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Germany's Merkel: Govts Need Coordinated Exit Strategies



By Patrick McGroarty, Of DOW JONES NEWSWIRES

BERLIN -(Dow Jones)- Governments worldwide will need "coordinated exit strategies" as they emerge from the economic crisis, German Chancellor Angela Merkel said at a conference Friday.

"The crisis has not yet been overcome," Merkel said, adding that economic weakness will continue to impact the labor market and that political disagreement over the best solutions is inevitable.

-By Patrick McGroarty, Dow Jones Newswires; +49-30-288-84128; patrick.mcgroarty@dowjones.com

(Adds further comment from Merkel, detail)

BERLIN -(Dow Jones)- Governments worldwide need to design "coordinated exit strategies" as they emerge from the economic crisis, German Chancellor Angela Merkel said at a conference Friday.

"The crisis has not yet been overcome," Merkel said, adding that Germany's economy would contract this year by "at least 4.5%."

The German finance ministry predicted Friday that unemployment could rise next year even as the economy grows. Merkel acknowledged that the crisis will continue to impact Germany's job market and occupy policy makers for "some time yet."

"The exit scenarios that we must make decisions on will continue to be argued over very strongly," Merkel said.

Urging commercial banks to lend is a particularly urgent challenge, Merkel said, adding that her government wants to create a "credit mediator" to lessen the danger of a credit crunch.

On Wednesday, Merkel announced a Dec. 2 meeting to bring together banks, businesses and trade unions to discuss methods for overcoming the economic and financial crisis. Economics Minister Rainer Bruederle said Thursday that urging banks to avoid a credit crunch would be a focus of the meeting.

On climate change, Merkel said she would work to make a conference next month in Copenhagen a "success," despite the decision Sunday by world leaders gathered in Asia not to agree to binding emissions reductions this year.

-By Patrick McGroarty, Dow Jones Newswires; +49-30-288-84128; patrick.mcgroarty@dowjones.com


  (END) Dow Jones Newswires
  11-20-090506ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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